Representatives of the 88-year-old club in Deer Isle, Maine attended a Board of Selectmen meeting to ask why it had been billed twice for a total of $7,800, and how that figure had been determined. After hearing that the town had “hired new help” to go through its books and identify entities that were not paying taxes when they should be, arrangements were made for an assessment to determine if an exemption could be applied.
Representatives from The Island Country Club in Deer Isle, Maine and members of the town’s Board of Selectmen were unable to come to an agreement about an issue with the club’s property tax bill during a meeting of the selectmen at the end of October, the Penobscot Bay Press of Stonington, Maine reported.
The issue, according to club members, was that the club had gotten a property tax bill at all—or actually two, for a total of $7,800, the Press reported. Sam Ostrow, co-President of the club’s Executive Committee, explained to the selectmen that because the club is a not-for-profit organization, it is exempt from federal and state taxes. Additionally, he had never seen a property tax bill from the town to begin with for the 88-year-old club, the Press reported.
“We have never had a property tax bill from the town before, so I guess we’re just wondering why we got one now, and how the figures were decided, given that there’s never been one before,” Ostrow said.
The Island Country Club is incorporated as a 501(c)(7) non-profit, tax-exempt organization.
Selectman Lew Ellis explained to the club’s representatives that “the older regime is gone,” the Press reported, and that the town had hired new help to go through its books to see what changes need to be made and who, if anyone, had not been paying taxes when they should have been.
“The only reason the club never had to pay taxes is because nobody informed the selectmen that you had to,” said Ellis. “The new assessors brought it to our attention, and we’re moving forward as such.”
The club’s representatives, which also included co-President Vern Seile and Linda Stratton, presented the selectmen with an application for a property tax exemption, citing the club’s not-for-profit title as reason for the exemption to be granted, the Press reported.
“We don’t pay taxes for two reasons,” said Seile. “We’re exempt [from federal and state taxes], and we lose money every year.”
Ostrow added that the club, by the time it pays its staff and utility bills, does not bring in much money, operating instead as an organization that gives back to the town.
“We have a scholarship that we give out every year, and we have the First Tee Program for the youth,” Ostrow said. “The high school doesn’t have a golf program now, but we like to hope that with the availability of our course to them, they’ll stay interested and give the town some notoriety.
“We also do several charity tournaments throughout the season,” Ostrow added. “All of the money raised during those tournaments goes into local charities. We also employ several members of the community.”
The selectmen briefly looked over the application and told the club representatives that they would review it further and get back to them, the Press reported. Ostrow noted that there is a deadline of December 31st to be granted the exemption, and that if the selectmen do not approve it, he would like to have a discussion about how the assessment was done and calculated. The assessor is scheduled to be at the club on November 16, the Press reported.
“We aren’t saying that the $7,000 is wrong—we just need to know how that number was calculated,” said Ostrow. “If we’re going to be taxpayers from now on, we need to be able to plan for that financially during the year.”
Ostrow added that the club would be willing to structure a method of payment in lieu of tax money, as other organizations in town do, the Press reported. “Our two basic questions right now are why we received a bill, and how the numbers were calculated,” he said.
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